Saudi Arabia's banks have eased a drive to amass investments abroad as they appear to be shifting their interest back to the domestic market after keeping a low profile for more than a year, according to official data.
After soaring by nearly 75 per cent through 2009, the combined investments abroad by the Gulf Kingdom's 12 commercial banks edged down by around SR one billion in the first half of 2010, showed the figures by the Saudi Arabian Monetary Agency (Sama), the country's central bank.
From around SR112.3 billion at the end of 2009, the investments abroad slumped to SR108.3 billion at the end of last January and continued to fluctuate to reach SR111.1 billion at the end of June, the report showed.
The relatively stability this year followed a sharp rise by the banks' overseas investments as they sought to counter slackening credit demand at home and the absence of government bonds, Sama said in its June bulletin.
From SR64.8 billion (Dh64.1 billion) at the end of 2008, the banks' investments abroad leaped to SR112.3 billion (Dh121.7 billion) at the end of 2009.
